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Guest wrongmove

Guest wrongmove

"Investors' appetite for risk has not been diminished by the threat of a credit market crunch, according to evidence that suggests that markets are putting the sub-prime crisis behind them.

A yardstick of investor demand - Dresdner Kleinwort's so-called Fear and Greed Index - has hit a new high, indicating that investors are still willing to accept paper-thin premiums for buying risky assets.

Meanwhile a Reuters poll showed that despite the growing disquiet over a number of recent high-profile failures in the debt markets, long-term investors did not make major changes to their portfolios between May and June.

Some had feared that rising money market interest rates would spell an end to the recent period of cheap borrowing in the corporate debt markets, where lenders have sought to undercut each other in offering cheaper loans with fewer covenants.

But James Montier of Dresdner said his index showed the markets are still experiencing "irrational exuberance." ......"